NewsWhore
07-05-2007, 03:30 PM
PRD senators continue to press the point that the Sichuan Heavy Machinery Company and Emirates coal-burning power plant contracts the Executive Branch has sent to Congress for approval are more onerous than the infamous Hydro-Quebec-Sofati, Smith Enron and Cogentrix contracts signed by the government in the past. PRD senators spokesman Roberto Rodriguez says that the proposed contracts violate the country's present General Electricity Law.
As reported in Hoy, the PRD criticizes that the terms of the contract were changed to favor the chosen companies, as disputed by HN Energy Company, that lost the bid on the original terms and has threatened to sue the state. Diario Libre reports that Sichuan's first proposal was originally rejected on 30 January 2006 because it did not comply with the terms of reference, but nevertheless, the company was subsequently awarded the contract.
Furthermore, the PRD states that the Sichuan contract has an overcost of US$260 million the result of an overprice in contracted power of US$0.29 against the US$0.257 originally contracted. Likewise, the PRD senators mention an overprice of more than US$100 million, attributed to a manipulating of the indexing of the high costs of operation of maintenance. Among other irregularities, the state would have to commit to issue a revolving sovereign guarantee for US$30 million, which could turn around 27 times in 10 years, becoming potentially US$810 million. "The excessive coverage in guarantees that would be granted by the government means that Sichuan in its first 10 years of operation would have assured a guarantee of US$900 million, or US$100 million more than it proposes to invest," explains the PRD block.
Furthermore, the contract establishes that the government will commit to supply fuel, buy energy, pay capital and interest on the initial investment. This means a flow of US$22 million a month, or US$44 million if both Sichuan and Emirates plants are contracted to build the plants, analyzes the PRD.
More... (http://www.dr1.com/index.html#8)
As reported in Hoy, the PRD criticizes that the terms of the contract were changed to favor the chosen companies, as disputed by HN Energy Company, that lost the bid on the original terms and has threatened to sue the state. Diario Libre reports that Sichuan's first proposal was originally rejected on 30 January 2006 because it did not comply with the terms of reference, but nevertheless, the company was subsequently awarded the contract.
Furthermore, the PRD states that the Sichuan contract has an overcost of US$260 million the result of an overprice in contracted power of US$0.29 against the US$0.257 originally contracted. Likewise, the PRD senators mention an overprice of more than US$100 million, attributed to a manipulating of the indexing of the high costs of operation of maintenance. Among other irregularities, the state would have to commit to issue a revolving sovereign guarantee for US$30 million, which could turn around 27 times in 10 years, becoming potentially US$810 million. "The excessive coverage in guarantees that would be granted by the government means that Sichuan in its first 10 years of operation would have assured a guarantee of US$900 million, or US$100 million more than it proposes to invest," explains the PRD block.
Furthermore, the contract establishes that the government will commit to supply fuel, buy energy, pay capital and interest on the initial investment. This means a flow of US$22 million a month, or US$44 million if both Sichuan and Emirates plants are contracted to build the plants, analyzes the PRD.
More... (http://www.dr1.com/index.html#8)